More and more German companies are planning to move their business abroad and up to 100,000 jobs could be cut in the country's industrial sector by 2026. This is reported by the Handelsblatt newspaper, citing a joint study conducted with the consulting firm Horvath.
A survey of 1,000 companies showed that 60% intend to further reduce jobs in Germany by 2030 and move more production abroad. As a result, key industries such as the automotive, mechanical engineering and construction industries could lose up to 100,000 employees in 2026 alone. Only 16% of companies have stated their intention to increase their workforce in Germany.
“Germany's model as an exporting country was successful for decades. Now it's over“, said Horvath partner Ralf Sauter. He noted that production, research and development are increasingly spread around the world instead of being concentrated in one place.
German companies intend to create new jobs in India, China, other Asian countries and North America. The US remains the most important investment destination for German companies, despite its customs policy. However, companies cite high personnel costs, rather than rising energy prices or bureaucracy, as one of the main reasons for moving their business abroad.
Several German giants have previously announced plans to reduce investment activity in Germany. Specialty chemicals company Evonik plans to cut 3,200 jobs, mostly in Germany; pharmaceutical company Boehringer Ingelheim is investing billions in the US and is abandoning investments in Germany worth up to €900 million; Siemens Energy has decided to invest $1 billion in expanding production in the US and creating up to 1,500 jobs there; and automotive giant Mercedes-Benz is also investing $7 billion in increasing production capacity in the US.